Bba Project on hdfc bank

8/18/2019 Bba Project on hdfc bank

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ST. Xaviers College, Jaipur

“Performance Analysis of HDFC bank

And customer awareness on home loans”

Housing Development Finance Corporation imited

P!"#$C%

&'(o' Contents

1 Acknowledgement

2 Preface

3 Introduction of the project

4


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AC)("*$D+$,$(%

I would like to place my sincere thanks to all those Persons who helped me in completing my

project successfully. valuale time and e!pertise guidance at every step of my project.


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"astly I owe my project success to my parents who always motivated me throughout my project

# to my college "irarians$ my seniors$ friends for helping me in my project # thankful to all

the person$ who directly or indirectly helped me in accomplishing my project.


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PREFACE

Research work in management is extremely important for it gives a close

view of the real business worl an briges the gap between theory an

practical. !or any ""# stuent who is striving to perform outstaning, it is of

paramount importance that apart from theoretical knowlege one must also

gain practical knowlege which in turn wiely in$uences their conceptions

an perceptions.

unertaken by me is %&erformance analysis of 'nia((((((((( best bank ) stuy

*n +ome oans.- 'n this, ' have trie to perform my best. 'n the forthcoming

pages an attempt has been mae to present comprehensive reportconcerning ierent aspects of pro/ect.


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-(%!"D.C%-"(

%ithout a sound and effective anking system in India it cannot have a healthy economy. &he

anking system of India should not only e hassle free ut it should e ale to meet new

challenges.

'or the past three decades India(s anking system has several outstanding achievements to its

credit. &he most striking is its e!tensive reach. It is no longer confined to only metropolitans or

cosmopolitans in India. In fact$ Indian anking system has reached even to the remote corners of

the country. &his is one of &he )ain reason of India*s growth process.

&he government(s regular policy for Indian ank since 1+,+ has paid rich dividends with the

nationali-ation of 14 major private anks of India.

ot long ago$ an account holder had to wait for hours at the ank counters for getting a draft or

for withdrawing his own money. &oday$ he has a choice. /one are days when the most efficient

ank transferred money from one ranch to other in two days. ow it is simple as instant

messaging or dials a pi--a. )oney has ecome the order of the day.

&he first ank in India$ though conservative$ is estalished in 10,. 'rom 10, till today$ the

journey of Indian anking ystem can e segregated into three distinct phases. &hey are as

mentioned elow

• 5arly phase from 10, to 1+,+ of Indian anks

• ationali-ation of Indian anks and up to 1++1 prior to Indian anking sector 6eforms.

ew phase of Indian anking ystem with the advent of Indian 'inancial # anking ector

6eforms after 1++1 to make this write7up more e!planatory$ I prefi! the scenario as phase I #

phase II$ phase III.


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C",PA(/ P!"F-$

-(%!"D.C%-"(

'HDFC' - a household name that Indians proudly reckon with!

Housing Development Finance Corporation imited0 founded 1+00 y 6avi )aurya and

8asmukhhai Parekh$ is an Indian '9$ focusing on home mortgages with the primary

ojective of meeting a social need of encouraging home ownership y providing long7term

finance to households. :ver the last three

decades$ 8;'9 has turned the concept of housing finance for the growing middle class in India

into a world7class enterprise with e!cellent reputation for professionalism$ integrity and

impeccale service.

A pioneer and leader in housing finance in India$ since inception$ 8;'9 has assisted more than

1'2 million families to own a home of their own$ through cumulative housing loan approvals of

over !s' 3'45 trillion and disursements of over !s' 3'63 trillion as at ,arch 170 3878'

8;'9 has a wide network of 351 offices


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History

8ousing ;evelopment 'inance 9orporation "imited$ more popularly known as 8;'9 ank "td$

is estalished in the year 1++4$ as a part of the lierali-ation of the Indian anking Industry y

6eserve ank of India crore


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6isk )onitoring 9ommittee

9redit Approval 9ommittee

&he Premises 9ommittee

omination 9ommittee

'raud )onitoring 9ommittee

9ustomer ervice 9ommittee

Audit and 9ompliance 9ommittee 7 &he Audit and 9ompliance 9ommittee of the ank is

chaired y )r. Arvind Pande. &he other memers of the 9ommittee are )r. Ashim amanta$ )r.

9. ). Casudev and )r /autam ;ivan. )r. oy Parikh and ;r. C. 6. /adwal ceased to e

memers of the 9ommittee w. e. f. :ctoer 10$ 2>>, and )arch 14$ 2>>0 respectively. )r. 9. ).

Casudev and )r. /autam ;ivan were inducted as memers of the 9ommittee w.e.f. :ctoer 10$

2>>,. All the memers of the 9ommittee are independent directors and )r. /autam ;ivan is a

financial e!pert.

&he 9ommittee met +


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Any other terms of reference as may e included from time to time in clause 4+ of the listing

agreement. &he oard has also adopted a charter for the audit committee in connection with

certain Enited tates regulatory standards as the ank(s securities are also listed on ew @ork

tock 5!change.

9ompensation 9ommittee ; &he 9ompensation 9ommittee reviews the overall compensation

structure and policies of the ank with a view to attract$ retain and motivate employees$ consider

grant of stock options to employees$ reviewing compensation levels of the ank(s employees vis7

a7vis other anks and industry in general.

&he ank(s compensation policy is to provide a fair and consistent asis for motivating and

rewarding employees appropriately according to their jo F role si-e$ performance$ contriution$

skill and competence.

)r. Gagdish 9apoor$ )r. Ashim amanta and )r. /autam ;ivan are the memers of the

9ommittee.

)r. oy Parikh and ;r. C. 6. /adwal ceased to e memers of the 9ommittee w. e. f. :ctoer

10$ 2>>, and )arch 14$ 2>>0 respectively. &he 9ommittee is chaired y )r. Gagdish 9apoor. All

the memers of the 9ommittee other than )r. 9apoor are independent directors.

&he 9ommittee met 3 ,.

&he 9ommittee is chaired y )r. 9apoor and met 13 times during the year. &he powers to

approve share transfers and dematerialisation re?uests have een delegated to e!ecutives of the

ank to avoid delays that may arise due to non7availaility of the memers of the 9ommittee.


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As on )arch 31$ 2>>0$ 4 instruments of transfer representing 401 shares were pending and

since then the same have een processed. &he details of the transfers are reported to the oard of

;irectors from time to time.

;uring the year$ the ank received 2>, complaints from shareholders$ which have een attended

to.

6isk )onitoring 9ommittee 7 &he committee has een formed as per the guidelines of 6eserve

ank of India on the Asset "iaility )anagement F 6isk )anagement ystems. &he 9ommittee

develops ank(s credit and market risk policies and procedures$ verify adherence to various risk

parameters and prudential limits for treasury operations and reviews its risk monitoring system.

&he committee also ensures that the ank(s credit e!posure to any one group or industry does not

e!ceed the internally set limits and that the risk is prudentially diversified.

&he 9ommittee consists of )rs. 6enu Harnad$ )r. Aditya Puri and )r. 9. ). Casudev and is

chaired y )rs. 6enu Harnad. )r. oy Parikh ceased to e memer of the 9ommittee w.e.f.

:ctoer 10$ 2>>, and )rs. 6enu Harnad is inducted as 9hairperson of the 9ommittee on

:ctoer 10$ 2>>,.

&he 9ommittee met , 0.


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&he 9ommittee is chaired y )rs. 6enu Harnad.

&he 9ommittee met 3 >0. All the memers of the 9ommittee

are Independent directors.

&he 9ommittee met 3


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3. )onitor progress of 9I F Police Investigation and recovery positionD

4. 5nsure that staff accountaility is e!amined at all levels in all the cases of frauds and

staff side action$ if re?uired$ is completed ?uickly without loss of time.

. 6eview the efficacy of the remedial action taken to prevent recurrence of frauds$

such as strengthening of internal controls.

,. Put in place other measures as may e considered relevant to strengthen preventive

measures against frauds.

&he memers of the 9ommittee are )r. Gagdish 9apoor$ )r. Aditya Puri$ )r. Heki )istry

and )r. Arvind Pande. )r. oy Parikh has ceased to e memer of the 9ommittee w.

e. f. 10th :ctoer$ 2>>,.

&he 9ommittee is chaired y )r. 9apoor and met 3 >0.

&he 9ommittee met 4


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Awards & Accolades 20

1. :est CF" in the financial sector for 3878 by -CA-' =Feb >77?; )r. C 6angan$

5!ecutive ;irector $ 8;'9 has een awarded the est 9': in the financial sector for

2>1> y I9AI.

2. @erve Power ist 3878 =#une >78? ; )s. 6enu ud Harnad featured in Cerve

maga-ine*s list of > power women.

3. Finance Asia>s ist of Asia>s :est ,anaged Companies =April >78? ; 8;'9

featured in 'inance Asia maga-ine*s list of Asia*s est )anaged 9ompanies.

4. $% ; Corporate Dossier ist of -ndia -nc>s ,ost Powerful *omen leaders

=Apr >78? ; )s. 6enu ud Harnad featured among the list of top 1 powerful women

95:s.

. !eader>s Digest -ndia>s ,ost %rusted 3884 =,ar >78? ; )r. ;eepak Parekh

voted among India(s )ost &rusted y people across India in a poll conducted y 6eader(s

;igest on a list of 1>> pulic figures.

,. -ndia %oday Power ist 3878 =,ar >78? ; )r. ;eepak Parekh featured in India

&oday*s list of > Power People.

0. %imes of -ndia Crest ist of 788 Powerful *omen =,ar >78? ; )s. 6enu ud

Harnad featured in the usiness category among the "ist of 1>> Powerful %omen y &:I

J 9rest.


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%ype of products offered in HDFC

7' H",$ "A(

A new home rings with it new hopes$ joys and emotions. At 8;'9$ we have shared new hopes$

joys and emotions with over 32 "akh customers. 5very customer has a specific and uni?ue

concern. 8aving earned an e!perience of 3> years in home loans$ :ur home loan product is

customised to provide you solutions for your uni?ue concern.

Features

• ,aBimum loan

>B of the cost of the property years suject to your retirement age.

Applicant and Co; Applicant to the loan

8ome "oans can e applied for either individually or jointly. Proposed owners of the

property$ will have to e co7applicants. 8owever$ the co7applicants need not e co7

owners.

Adustable !ate Home oan

"oan under Adjustale 6ate is linked to 8;'9(s 6etail Prime "ending 6ate


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5)I on the home loan disursed will not change. If the interest rate increases$ the interest

component in an 5)I will increase and the principal component will reduce resulting in

an e!tension of term of the loan$ and vice versa when the interest rate decreases.

3' AP7 "A( A+A-(&% P!"P$!%/

8;'9 8ome 5?uity "oans helps you encash the present market value of the property y taking a

loan y mortgaging the property.

Features of oan Against Property

Purpose

"oan can e for any purpose. 8owever$ the funds should not e used for speculation or any

illegal purposes.

9ustomers have enefited y taking loans to meet the following funding re?uirements

• 5ducation

• )arriage 5!penses

• )edical 5!penses

Property

• 6esidential

• on 6esidential

7 hould e 'ully 9onstructed

7 hould e a 'reehold property having a clear and marketale title.


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Adustable !ate Home oan

"oan under Adjustale 6ate is linked to 8;'9(s 6etail Prime "ending 6ate B of the market value and present loan outstanding

ew 9ustomers

7 >B of the market value of the property >$>>> for 6esidential property and 6s.0.> "acs for

on 6esidential Property

7 6epayment 9apacity of the customer

,aBimum %erm

Property %ype !epayment "ption (o' of /ears

6esidential 5)I ased 1

on 6esidential 5)I ased 1

6esidential and on

6esidential

imple Interest 2

K uject to retirement age of the customer

*ef < 79th ,ay 3871 !P!< 79'88Applicable !ates

B


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&he aove rates are suject to change without notice.

1' -ndividual FiBed Deposits @ariable Deposits

8;'9 has instituted well7defined service standards for oth depositors and deposit agents.

8;'9 has een ale to moili-e deposits from over 1> lac depositors. :utstanding deposits

grew from 6s. 1$4 crores in )arch 1++4 to 6s 23$>1 crores in )arch 2>1>. )uch of this

success can e attriuted to its strong rand image$ superior services$ security and aove all$ the

significant contriution made y 8;'9(s deposit agents. 8;'9 has over 1$>>> deposit agents

and distriutes all its retail savings


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-(%!"D.C%-"(

9redit appraisal is one of the most important and significant step in the 8ome "oan process. In

case of home loans we either create new accounts or maintain pre e!isting ones. 9redit appraisal

is however a part of sanctioning new loans or enhancing the e!isting one 9redit Appraisal starts

from the moment you take the documents from customer for "oan$ which is then sent to ack

office for processing which is called 8E .In case of India 8aitat 9entre it refers to the well

recogni-ed 8;'9 6egional office at )unirka.

CA%$+"!-$&

In case of 9redit Appraisal there are three main categories7

1. SALARIED PERSON

8ere the 9redit Appraisal is done for a salaried person .%e try to compute the credit worthinessof a salaried person .y saying that we mean that the person is employed as an employee in a

recogni-ed organi-ation. &he organi-ation may e pulic or private. &he person must have proof

to prove his employment like credit documents etc.

2. SELF EMPLOYED PERSON

&he nature of 9redit Appraisal done for a self employed applicant is slightly more comple! and

dicey. &his is due to the presence of enormous ank statements as well as transactions involved

in usiness. As conducting usiness in modern times is a capital intensive process the ank

statements of self employed persons are large and much more comple!. &he statement runs into a

large numer of pages due to the multiple numer of transactions. Apart from that their income

statements are also ?uite comple! due to presence of many components. 8ence in the case of a

self employed person demanding a loan the credit appraisal has to e done very carefully .'or

this very purpose 8;'9 "td has appointed peciali-ed 9redit Appraisers and a speciali-ed elf

employed 9ommittee. &hese consist mainly of 9hartered Accountants. &hey handle the

important jo of appraising the credit worthiness of the self employed applicants.

3= SELF EMPLOYED PROFFESSIONAL


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&he self employed professionals include people like ;octors$ 9hartered accountants$ 5ngineers

etc. :nly 8;'9 recogni-es these professionals as a separate category and has hence developed a

comparatively smoother procedure for their 9redit Appraisal and sanctioning of loan.

,arket Analysis of Company

8;'9 has always een market7oriented and dynamic with respect to resource moili-ation as

well as its lending programme. &his renders it more than capale to meet the new challenges that

have emerged. :ver the years$ 8;'9 has developed a vast client ase of orrowers$ depositors$

shareholders and agents$ and it hopes to capitali-ed on this loyal and satisfied client ase for

future growth. Internal systems have een developed to e roust and agile to take into account

changes in volatile e!ternal environment.8;'9 has developed a network of institutions through partnerships with some of the est

institutions in the world$ for providing speciali-ed financial services. 5ach institution is eing

fine7tuned for a specific market$ while offering the entire 8;'9 customer ase the highest

standards of ?uality in product design$ facilities and service.


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HDFC H",$ "A( P!"D.C%&

1= 8ome "oan

2= 8ome Improvement "oan

3= 8ome 5!tension "oan

4= "and purchase loan

= hort &erm ridging "oan

,= "oan to Professionals for on 6esidential Premises

0= 8ome 5?uity "oan


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H",$ "A(

8;'9 offers loans to individuals to purchase


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M MAXIMUM LOANS

• 'or 5!isting customers 1>>B of the cost of improvement

• 'or ew customers B of the cost of improvement

MAXIMUM TERM

1 years suject to retirement age.

H",$ $G%$(&-"( "A(

8ome e!tension loan facilitates the e!tension of an e!isting dwelling unit. &his type of loan

makes it convenient to e!tend or add space to home.

PURPOSE

&his loan is specifically for the e!tension purpose. e it an additional room$ a larger athroom or

even enclosing an open alcony.

MAXIMUM LOAN

B of the cost of e!tention.

MAXIMUM TERM

2> years suject to retirement age.

A(D P.!CHA&$ "A(

PURPOSE

8;'9 "and purchase loan is a convenient loan facility to purchase land$ whether it e to uild a

house or an investment.

MAXIMUM LOAN

B of cost of land and ased upon the repayment capacity of the customer.

MAXIMUM TERM

1 years suject to customer retirement age.


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&H"!% %$!, :!-D+-(+ "A(

PURPOSE

hort &erm ridging loan makes customer reali-e their dreams of uying a igger and etter

home and give them time to sell their e!isting property to pay off the loan. &his is a short termloan to help customers with the interim period etween the sale of their old homes and the

purchase of a new home. 9ustomers repay the loan y paying monthly installment or interest on

the loan with the lump sum payments within 2 years. 8ence customers gets 2 years to sell the

property repay the loan.

MAXIMUM LOAN

+>B of the cost of new property

MAXIMUM TERM

2 years

":A &: P6:'5I:A" ':6 : 65I;5&IA" P65)I5

&his loan facilitates professional to purchase and construct their own office premises or even

renovate their e!isting office premises.

PURPOSE

•Purchase

• 9onstruction

• Improvement of office

MAXIMUM LOAN

B of the cost of property

MAXIMUM TERM

1 years suject to customer retirement age.


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)-D& AD@A(%A+$ ACC".(%&

tart saving for your child today and secure hisFher future. :pen a avings Account and transfer

money every month into hisFher Hids Advantage Account. %atch the savings grow as your child

grows. &he accumulated savings in the Hids Advantage Account can over the years help in

meeting your child(s needs.

Features :enefits

uilds up savings for your child(s future.

Automatically increases the alance in your Hids Advantage Account y transferring a

fi!ed sum from your avings Account every month.

Amounts in e!cess of 6s. $>>>F7 over and aove a alance of 6s. 1>$>>>F7 gets

converted into 'i!ed ;eposits for a specified period in your child(s name.

'ree International ;eit 9ard for your child >F7 per day.

'ree 5ducation Insurance cover of up to 6s. 1$>>$>>>F7 for your child with every Hids

Advantage Account.

et anking facility to monitor oth$ your avings Account as well as your HidsAdvantage Account.

'ree 'unds &ransfer etween your avings Account and your Hids Advantage

Account.

:pt for systematic Investment in )utual 'unds to plan for your childs future.


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'ree InstaAlerts for all account holders for lifetime of the account.

'ree Passook facility availale at home ranch for account holders

Bba Project on hdfc bank

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